Qualitative Easing

Quantitative easing is all the rage today. The Bank of England pumped £75 billion into the economy and reduced interest rates to 0.5% - both actions should be applauded but we need to ask where the £75 bn is going.

Simply increasing the amount of money available to commercial banks to borrow from the BoE and then lend to customers, means that the country suffers unfocused reflation. While there is clearly a need for businesses to gain access to borrowing, the government should use a large proportion of the money to stimulate green economies.

We need a national insulation programme, massive investment in renewables and public transport. Ploughing money into these areas would reflate the economy and create the green jobs that the country needs. This investment could be thought of qualitative easing perhaps?